It may be recalled that in the Union Budget, 2020, Union Finance Minister Nirmala Sitharaman on 28th May 2020 ,Thursday launched the facility for instant allotment of PAN.

The allotment process is paperless and an electronic PAN (e-PAN) is issued to the applicants free of cost.

This facility enables to get PAN  for applicants who possess a valid Aadhaar number and have a mobile number registered with Aadhaar.

How to apply for instant PAN through Aadhaar based e-KYC

- The instant PAN applicant is required to access the e-filing website of the Income Tax Department(https://www.incometaxindiaefiling.gov.in/e-PAN/) to provide your valid Aadhaar number

- Then submit the OTP received on your Aadhaar registered mobile number.

- On successful completion of this process, a 15-digit acknowledgment number is generated.

- You can check the status of the request anytime by providing your valid Aadhaar number and on successful allotment, can download the e-PAN.

- The e-PAN is also sent to you one your email id, if it’s registered with Aadhaar.

The Beta version of the instant PAN through Aadhaar based e-KYC on trial basis was started in February this year on the e-filing website of Income Tax Department. 6,77,680 instant PANs have been allotted with a turnaround time of about 10 minutes, May 2020, an official release said.

As on May 25, 2020, a total of 50.52 Crore PANs have been allotted to the taxpayers. Out of which, around 49.39 Crore are allotted to the individuals and more than 32.17crore are seeded with Aadhaar so far.

In wake to prevent use of  black money and widening of tax base ,today goverment has ammendede use of  Permanent Account Number (PAN)  where the transactions exceed a specified limit.
As per finance minister last budget speech  quoting of PAN number is  mandatory for all sales and purchases of goods and services where the payment exceeds Rs.1 lakh.Further in this regard it has been decided that quoting of PAN will be required for transactions of an amount exceeding Rs.2 lakh regardless of the mode of payment(either Cash or Cheque)

1.) All Transactions Over Rs 2 Lakh Will Have To Quote PAN Number

2.) Will Give Some Breathing Time To Taxpayers

3.) Other Than PNJDY Accounts, PAN Is Mandatory For Opening Any Bank A/c

4.) For Any Term Deposit Of Rs 50,000, PAN Will Now Be Mandatory

5.) PAN Is Mandatory For Restaurant Bills Over Rs 50,000

5.) PAN Requirement To Buy Immovable Asset Is Being Hiked To Rs 10 Lakh from Rs 5 Lakh

1) Sale/purchase of motor vehicle

2) Sale/purchase of any immovable property of Rs. 5 Lacs or more

3) Deposit exceeding Rs. 50,000/ - in any post office

4) Fixed Deposit exceeding Rs. 50,000/- in any bank

5) Sale/purchase of Securities exceeding Rs. 1,00,000/-

6) Opening an Account with any Bank

7) Application for a telephone connection (including a mobile telephone connection)

8) Payment to hotels and restaurants against their bills for an amount exceeding Rs. 25,000/- at any one time

9) Payment in cash for purchase of bank drafts or pay orders or banker's cheques for an amount aggregating Rs. 50,000/- or more during any one day

10) Cash deposit in cash aggregating Rs. 50,000/- or more, with a banking company during any one day

11) Payment in cash for any foreign country travel exceeding Rs. 25,000/- at any one time.

12) Application to any bank for issue of a credit or debit card;

13) Payment of an amount of Rs. 50,000/- or more to a Mutual Fund for purchase of its units

14) Payment of an amount of Rs. 50,000/- or more to a company for acquiring shares issued by it

15) Payment of an amount of Rs. 50,000/-or more to a company or an institution for acquiring debentures or bonds issued by it

16) Payment of an amount of Rs. 50,000/- or more to the Reserve Bank of India, for acquiring bonds issued by it

17) Payment of an amount aggregating Rs. 50000/- or more or more in a year as life insurance premium

18) Payment to a dealer for purchase of bullion or jewellery, of an amount of Rs. 5 Lacs or more at any time


If any person does not have PAN No., he/she need to file declaration Form No. 60 for such transaction. Hence, your every transaction can be tracked down by the department.

The Permanent Account Number under new series is based on following constant permanent parameters of a taxpayer and uses Phonetic Soundex code algorithm to ensure uniqueness :-
 i. Full name of the taxpayer;
 ii. Date of birth / Date of Incorporation;
 iii. Status;

 iv. Gender in case of individuals; and
 v. Father’s name in case of individuals (including in the cases of married ladies)
 These five fields are called core fields, without which PAN can not be allotted


The fourth character of the PAN must be one of the following, depending on the type of assesse:
C — Company
P — Person
H — HUF(Hindu Undivided Family)
F — Firm
A — Association of Persons (AOP)
T — AOP (Trust)
B — Body of Individuals (BOI)
L — Local Authority
J — Artificial Juridical Person
G — Govt